Chinese officials are considering
rules that would make it more difficult for local government to seize
property from individuals and turn it over to developers without at
least compensating the property owners, according to a report in the May
27, 2010, edition of The New
York Times. East Lansing officials may want to pay attention.

Government taking of private property in China has led to
considerable civil unrest including several cases of suicide of
victimized property owners. Chinese officials may be more worried about
rapidly escalating real estate values and a possible future real estate
bubble than individual property rights, but at least people resisting
the government taking of their property has gotten the Chinese
government's attention.

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East Lansing officials would be correct to point out that the
situation regarding private property rights in China is much different
than that in Michigan, where eminent domain is subject to federal
constitutional as well as state constitutional and statutory protection.
Businesses and property owners in the East Village area of East
Lansing, however, have discovered that the threat of a blight
designation by city officials has a serious negative impact on property
values and can even threaten the future viability of their businesses.

The East Village area is a 35-acre neighborhood with 2,000 residents
and 600 housing units. The area is typical of neighborhoods near
universities and features well-maintained apartments, businesses and
homes. City planners apparently have other ideas for the area. According
to the city's master plan for the East Village area, they would like to
replace students living in the area with residents of all ages and
lifestyles and a more "diverse" commercial mix, including retail and
office uses.

The best laid plans of central planners seldom deliver the promised
benefits but instead violate private
property rights and destroy existing economic investment in the
community. East Lansing officials should abandon any elements in their
East Village master plan that diminishes existing property values and
threatens the property rights of residents and businesses in the area.